Under Absorption Costing When Production Exceeds Sales in a Year

Multiple Choice

Under absorption costing when production exceeds sales in a year:

A) Inventory values and cost of goods sold are higher than under variable costing.
B) Inventory values and cost of goods sold are lower than under variable costing.
C) Inventory values are lower and cost of goods sold are higher than under variable costing.
D) Inventory values are higher and cost of goods sold are lower than under variable costing.